Michael Burry Reveals 'Sizable' Stakes In Fannie Mae, Freddie Mac: 'Toxic Twins No More' - Federal Home Loan (OTC:FMCC)

Core Viewpoint - Michael Burry has taken sizable positions in Fannie Mae and Freddie Mac, indicating a bullish outlook on these mortgage finance giants as they may return to public markets, which he refers to as "Toxic Twins No More" [1][2][5] Group 1: Investment Thesis - Burry projects that an IPO for Fannie Mae and Freddie Mac could price shares between 1 and 1.25 times book value [2] - He anticipates that once listed, shares could trade at 1.5 to 2 times book value within one to two years, expecting natural growth acceleration post-IPO [3] - The investment marks a significant shift for Burry, who previously warned about the GSEs' fragility and past failures, including the 2008 crisis [4] Group 2: Market Context - Burry speculates that Berkshire Hathaway could take a substantial position in Fannie Mae and Freddie Mac if they go public, as Berkshire previously held stakes in these companies before the 2008 crash [6] - The potential IPOs align with reports that the Trump administration may launch them later this year, with Fannie and Freddie currently guaranteeing approximately 62% of outstanding U.S. mortgages [7]